Franchise Makes Sense for Business Expansion

The clients hoping to purchase and reopen a closed convenience store in Wytheville contacted their local SBDC for assistance building financial projections needed to secure a bank loan. The plan included a major update of the store facilities and the addition of a Quiznos franchise to replace the stores previous restaurant operation.

The SBDC assisted the owner in developing conservative projected financials based on past store financials, gas supplier projections, and Quiznos franchise projections. The projected financials demonstrated that the business could produce a profit quickly if both the convenience store and Quiznos were both operational. Without the Quiznos franchise as the drawing card the convenience store was at best a break even project.

The owner’s bank agreed to provide funding for the project based on his business proposal and his projected financials. The convenience store opened in October 2004 and Quiznos is projected to open in March 2005. The owner projects he will hire 25 additional employees to operate Quiznos and has projected combined sales for 2005 to be 2 million.